- \n
- Prices are holding firm:<\/strong> median price under contract is up +4.6% in April compared to February and March averages (Ozaukee, Milw., Wash., Wauk. and Racine Co. combined)<\/li>\n
- Physical showings are down 45%<\/strong> – many buyers prefer more virtual showings<\/li>\n
- New Listings are down 24%<\/strong> as seller are holding off – even more pressure on inventory!<\/li>\n
- Listings under contract (accepted offers) are down only 15%<\/strong> (compared to -24% inventory) – buyer demand is more than robust!<\/li>\n
- Hot listings are selling with multiple offers <\/strong>– most deals we have been involved in over the last 3 weeks were competitive and had multiple offers<\/li>\n<\/ul>\n
\nWhat is a recession?<\/strong><\/h4>\n
According to the National Bureau of Economic Research<\/em><\/a>:<\/p>\n
\u201cA recession is a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in real GDP, real income, employment, industrial production, and wholesale-retail sales.\u201d<\/em><\/p><\/blockquote>\n
COVID-19 hit the pause button on the American economy in the middle of March. Goldman Sachs, JP Morgan,<\/em> and Morgan Stanley<\/em> are all calling for a deep dive in the economy in the second quarter of this year. Though we may not yet be in a recession by the technical definition of the word today, most believe history will show we were in one from April to June.<\/p>\n
Does that mean we\u2019re headed for another housing crash?<\/strong><\/h4>\n
Many fear a recession will mean a repeat of the housing crash that occurred during the Great Recession of 2006-2008. The past, however, shows us that most recessions do not adversely impact home values. Doug Brien, CEO <\/em>of Mynd Property Management,<\/em> explains<\/a>:<\/p>\n
\u201cWith the exception of two recessions, the Great Recession from 2007-2009, no other recessions has majorly impacted the U.S. housing market, according to Freddie Mac Home Price Index data collected from 1975 to 2018.\u201d<\/em><\/p><\/blockquote>\n
CoreLogic,<\/em> in a second study of the last five recessions<\/a>, found the same. Here\u2019s a graph of their findings:
![\"Recession?](\"https:\/\/files.mykcm.com\/2020\/04\/10102713\/20200413-MEM-Eng-1.jpg\")
<\/a><\/p>\nWhat are the experts saying this time?<\/strong><\/h4>\n
This is what three economic leaders are saying about the housing connection to this recession:<\/p>\n
Robert Dietz, Chief Economist with NAHB<\/strong><\/a><\/p>\n
\u201cThe housing sector enters this recession underbuilt rather than overbuilt\u2026That means as the economy rebounds – which it will at some stage – housing is set to help lead the way out.\u201d<\/em><\/p><\/blockquote>\n
- Physical showings are down 45%<\/strong> – many buyers prefer more virtual showings<\/li>\n